Liquidating a 401k
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To understand the taxation of partnerships and distributions, it is necessary to know the 2 types of tax bases concerning partnerships.
Whether earnings are retained in a partnership or distributed to partners has no affect on the taxation of those earnings, since the partners have to pay tax on the earnings whether they are distributed or not.
Earnings are distributed to each partner's capital account from which distributions are charged against.
When it comes to a 401(k), you can take it with you.
In fact, you probably should, in the form of a rollover IRA — an individual retirement account created with funds from an existing 401(k).